By Sophie Tan
Oct. 23 (Bloomberg) — Asian benchmark 180-centistoke fuel oil gained $6 a metric ton, or 1.1 percent, to a record $458 in Singapore, Asia’s biggest oil-trading center, according Bloomberg data. BP Plc bought a cargo for mid-November loading.
The price of 380-centistoke fuel oil, mainly used as marine fuel, climbed $6.50, or 1.5 percent, to an all-time high of $447 a ton. Royal Dutch Shell Plc and PetroChina Co. bought a cargo each.
Dubai crude for December delivery rose 40 cents, or 0.5 percent, to $78.44 a barrel, according to Bloomberg data. Prices have risen 38 percent this year.
Fuel oil’s discount to Dubai crude oil, known as the crack spread, narrowed to $7.43 a barrel from $7.96 a barrel, according to Bloomberg data. The differential is a measure of profit or loss from processing Dubai crude.
Fuel oil transactions on oil-pricing service Platts’ trading system:
BP Plc bought a cargo of 180-centistoke fuel oil from Hin Leong Trading at a premium of $2.50 a ton over the average Singapore fuel oil assessments by Platts for loading between Nov. 18 and Nov. 22.
Royal Dutch Shell Plc bought a cargo of 20,000 tons of 380-centistoke fuel oil from Hin Leong Trading Pte for loading between Nov. 18 and Nov. 22 at a premium of $2 a ton. Vitol Group sold to PetroChina Co. 20,000 tons of 380-centistoke fuel oil at a premium of $3 a ton for loading between Nov. 12 and Nov. 16.
Spot Prices
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Singapore ($/metric ton)
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Bid Offer Change
180-centistoke Fuel Oil
– 2 percent sulfur grade 467.50 468.50 6.00
– 3.5 percent sulfur grade 457.50 458.50 6.00
380-centistoke Fuel Oil 446.50 447.50 6.50
The oil’s centistoke rating is a measure of its viscosity, or flow rate, when heated. Fuel oil with a higher centistoke rating has a slower flow rate and requires further blending with other fuels to lower the rating. The main viscosity rates for bunker fuels are 380-centistoke and 180-centistoke.
To contact the reporter on this story: Sophie Tan in Singapore at [email protected] .
Last Updated: October 23, 2007 06:37 EDT
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